Exchange veto was right call

Gov. Chris Christie last week vetoed legislation that would have established a state-run health insurance exchange in New Jersey, joining a majority of states that have chosen not to create the local marketplace for individuals to buy health care coverage under the Affordable Care Act.

The exchanges are government-regulated and standardized health insurance plans, from which individuals eligible for federal subsidies may purchase health insurance. States have three options: create their own exchange, which advocates say allows for plans tailored to their individual needs; enter into a partnership with the federal government to craft one; or leave it entirely up to the feds.

We understand why Christie decided to walk away from a state exchange. As he noted in his veto statement, he would not commit the state to one unless the federal government could provide details on cost, how a local option would compare to other options and how much control New Jersey would have.

To sign up for a state-run exchange at this point would be "fiscally irresponsible," Christie said. We agree. And as he noted, he could opt for New Jersey to manage its own exchange in future years, once more details were provided and the experiences of states that chose to establish their own exchanges were analyzed.

Seventeen states and the District of Columbia will create their own exchanges, and five states intend to jointly operate them with the federal government. Those states that will operate their own are accepting a lot on faith on behalf of their citizens.

Statements from Rep. Frank Pallone Jr. and Sen. Bob Menendez, both D-N.J., bemoaning Christie's veto were not enlightening. And they hardly strengthened the case for New Jersey establishing its own exchange.

Pallone pointed out that "under the law, states that chose not to create their own state-based exchange will be forced to participate in a larger and less targeted federal exchange, which will provide good insurance plans, but will not be targeted directly to New Jerseyans."

Menendez said, "New Jersey taxpayers are on the hook every time someone without coverage shows up in an emergency room, whether it's for life-threatening treatment or routine medical care. The new health exchange will help families find affordable options."

But Menendez also found some common ground with Christie: "The one thing I do agree with the governor on is that this should not be done hastily."

As vital as health insurance exchanges may be, what we really cannot afford is for the state to create an exchange and find itself on the hook for unanticipated and extraordinary costs associated with the implementation of the Affordable Care Act. Christie acted responsibly and kept his options for the future open.

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Exchange veto was right call

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